Holidays are here! While many of us are gearing up for a much-needed break, it is quite common for us to get carried away and miss out on important tasks like bill payments and insurance renewals. Some might forget, some might postpone and some might intentionally default the payment. In either way, there will be repercussions especially when you fail to renew your car insurance policy on time. Imagine you are on a driving holiday and the law enforcement officer stops your car and asks you to show the papers only to see that you have not renewed your car insurance. You may end you paying a hefty fine or in the worst case, your car will be seized.
What Happens When A Policy Lapses
- From the date of expiry, car insurance companies provide a grace period of 3 to 30 days to renew your car insurance. Your renewal can be rejected if the application is submitted beyond the grace period.
- When you renew your car insurance during the grace period, you will have to shell out more towards premium as insurers levy penalty charges.
- If the renewal is not possible, the car owner has to apply for a new policy and the policy will be issued only after the surveyor inspects the vehicle.
- The policyholder will also lose the accumulated no-claim bonus (NCB).
How To Avoid Policy Lapses
Typically, most of the insurance companies send reminders or make calls to remind the policyholders about car insurance renewal. But many of us would have opted for a DND service or may not attend the call considering it as spam. It is recommended to set reminders on your calendar rather than depending on the insurer to remind you about the renewal.
Given the day and age we live in, you don’t have to visit the insurance company anymore. It is possible to renew your car insurance policy online in just a few clicks. Yes, visit your insurance company’s website or download its app. Create an account, enter your policy details, choose the coverage, make payment and your policy will reach your mailbox. It is as simple as that! Here are some tips that will help you during the renewal process.
Review The Coverage
A basic-third party coverage would have been enough for you when you occasionally took your vehicle out. But if you are currently using your vehicle on a daily basis, you may have to consider upgrading your car insurance to a comprehensive insurance cover as it offers complete protection for your car against all risks.
Review Your Insurance Company
For car owners, the driving factor towards choosing an insurance company is the premium. They choose the insurer who offers the lowest premium. While the premium is important, that should not be the only factor while considering an insurance company. There are other factors such as coverage options, claim to settlement ratio, network garages, facility to renew the policy/make claim online, customer support, etc. that one needs to check.
Install An Anti-Theft Device
Many insurance companies offer discounts to the policyholders who have installed anti-theft devices in their cars certified by the Automotive Research Association of India (ARAI). Having an anti-theft device installed in the car will lower the chances of car theft. Hence the risk is low for the insurer and the benefit is passed on to the policyholder by offering a discount on the premium.
Claim Your No-Claim Bonus (NCB)
Don’t forget to claim your NCB. If you have not made a claim during your policy period you are entitled to a discount in the form of a no-claim bonus. This can be accumulated for five years and has a maximum cap of 50%. Make sure your insurer includes the NCB component while calculating the premium. This can bring down your premium amount to a large extent. Your NCB won’t get affected even when you switch insurance companies.
We hope this blog made you realize the importance of renewing your car insurance policy on time and some tips that will help you take better decisions while renewing your insurance policy. Renew your car insurance on time and enjoy your holidays without any worries. Happy motoring from all of us here at Chola MS.